THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970                                                                                                                                        

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ARRANGEMENT OF SECTIONS                                                                                                            

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CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent, commencement and application. 

2. Definitions. 

CHAPTER II 

THE ADVISORY BOARDS 

3. Central Advisory Board. 

4. State Advisory Board. 

5. Power to constitute committees. 

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR 

CHAPTER III 

6. Appointment of registering officers. 

7. Registration of certain establishments. 

8. Revocation of registration in certain cases. 

9. Effect of non-registration. 

10. Prohibition of employment of contract labour. 

CHAPTER IV 

LICENSING OF CONTRACTORS 

11. Appointment of licensing officers. 

12. Licensing of contractors. 

13. Grant of licences. 

14. Revocation, suspension and amendment of licences. 

15. Appeal. 

CHAPTER V 

WELFARE AND HEALTH OF CONTRACT LABOUR 

16. Canteens. 

17. Rest-rooms. 

18. Other facilities. 

19. First-aid facilities. 

20. Liability of principal employer in certain cases. 

21. Responsibility for payment of wages. 

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CHAPTER VI 

PENALTIES AND PROCEDURE 

SECTIONS 

22. Obstructions. 

23. Contravention of provisions regarding employment of contract labour.  

24. Other offences. 

25. Offences by companies. 

26. Cognizance of offences. 

27. Limitation of prosecutions. 

CHAPTER VII 

MISCELLANEOUS 

28. Inspecting staff. 

29. Registers and other records to be maintained. 

30. Effect of laws and agreements inconsistent with this Act. 

31. Power to exempt in special cases. 

32. Protection of action taken under this Act. 

33. Power to give directions. 

34. Power to remove difficulties. 

35. Power to make rules. 

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THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 

ACT NO. 37 OF 1970 

[5th September, 1970.]  

An Act  to  regulate the employment  of contract  labour in  certain  establishments and to  provide 

for its abolition in certain circumstances and for matters connected therewith. 

BE it enacted by Parliament in the Twenty-first Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title,  extent, commencement and application.—(1) This Act may be  called the Contract 

Labour (Regulation and Abolition) Act, 1970. 

(2) It extends to the whole of India. 

(3)  It  shall  come  into  force  on  such  date1as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint and different dates may be appointed for different provisions of this Act. 

(4) It applies— 

(a) to every establishment in which twenty or more workmen are employed or were employed on 

any day of the preceding twelve months as contract labour; 

(b)  to  every  contractor  who  employees  or  who  employed  on  any  day  of  the  preceding  twelve 

months twenty or more workmen: 

Provided that the appropriate Government may, after giving not less than two months’ notice of its 
intention  so  to  do,  by  notification  in  the  Official  Gazette,  apply  the  provisions  of  this  Act  to  any 
establishment or contractor employing such number of workmen less than twenty as may be specified in 
the notification. 

(5) (a) It shall not apply to establishments in which work only of an intermittent or casual nature is 

performed. 

(b)  If  a  question  arises  whether  work  performed  in  an  establishment  is  of  an  intermittent  or  casual 
nature, the appropriate Government shall decide that question after consultation with Central Board or, as 
the case may be, a State Board, and its decision shall be final. 

Explanation.—For the purpose of this sub-section, work performed in an establishment shall not be 

deemed to be of an intermittent nature— 

(i)  if  it  was  performed  for  more  than  one  hundred  and  twenty  days  in  the  preceding  twelve 

months, or 

(ii) if it is of a seasonal character and is performed for more than sixty days in a year. 

Maharashtra 

STATE AMENDMENT 

Amendment  of  section  1  of  37  of  1970.—In  Section  1  of  the  Contract  Labour  (Regulation  and 

Abolition) Act, 1970, in its application to the State of Maharashtra, in sub-section (4),— 

(a) in clause (a),  for the words “twenty or more workmen” the words “fifty or more workmen” 

shall be substituted; 

1. 10th February, 1971, vide notification No. G.S.R. 190, dated 1st February, 1971, see Gazette of India, Extraordinary, Part II, 

sec. 3(i). 

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(b) in clause (b), for the words “twenty or more workmen” the words “fifty or more workmen” 

shall be substituted; 

(c) in the proviso, for the words “less than twenty” the words “less than fifty” shall be substituted. 

[Vide Maharashtra Act 2 of 2017, s. 2.] 

Andhra Pradesh 

Amendment  of  section  1  central  Act  37  of  1970.—In  the  Contract  Labour  (Regulation  and 
Abolition) Act, 1970, in section 1, in sub-section (4), in clauses (a), (b) and the provisio thereunder, for 
the word “twenty” the word “fifty” shall be substituted. 

[Vide Andhra Pradesh Act 21 of 2015, s. 2.]  

Uttar Pradesh 

In section 1 of the Contract Labour (Regulation and Abolition) Act, 1970 hereinafter referred 

to as the principal Act, for sub-section (4) the following sub-section shall be substituted— 

“(4) It applies— 

(a) to every establishment in which fifty or more workmen are employed or were employed 

on any day of the preceding twelve months as contract labour; 

(b) to every contractor who employs or who employed on any day of the preceding twelve 

months fifty or more workmen. 

Provided that the State Government may, after giving not less than two months’ notice of its 
intention so to do, by notification in the Official Gazette, apply the provisions of this Act to any 
establishment  or  contractor  employing  such  number  of  workmen  less  than  fifty  as  may  be 
specified in the notification.” 

[Vide the Uttar Pradesh Act 14 of 2018, s. 2] 
Union Territory Jammu and Kashmir and Ladakh 

Section 1.—In sub-section (4), in clause (a), for "twenty", substitute "forty". 

[Vide  Union  Territory  of  Ladakh  Reorganisation  (Adaptation  of  Central  Laws)  Order,  2020, 
Notification  no.  S.O.  3465(E),  dated  (5-10-2020)  and  vide  Union  Territory  of  Ladakh  Reorganisation 
(Adaptation of Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated (23-10-2020).] 

Rajasthan 

Amendment of section 1, Central Act No. 37 of  1970.—For the existing sub-section (4) of section 
1  of  the  Contract  Labour  (Regulation  and  Abolition)  Act,  1970  (Central  Act  No.  37  of  1970),    in  its 
application to the State of Rajasthan, the following shall be substituted, namely:- 

“(4) It applies- 

(a) to every establishment in which fifty or more workmen are employed or were employed on 

any day of the preceding twelve months as contract labour; 

(b) to every contractor who employs or who employed on any day of the preceding twelve 

months fifty or more workmen: 

Provided that the State Government may, after giving not less than two months’ notice of its intention 

so to do, by notification in the Official Gazette, apply the provisions of this Act to any establishment or 
contractor employing such number of workmen less than fifty as may be specified in the notification.” 

[Vide Rajasthan Act 19 of 2014, s. 2] 

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Gujarat 

Amendment of section 1 of 37 of 1970.—In the Contract Labour (Regulation and Abolition) Act, 1970, in its 

application to the State of Gujarat (hereinafter referred to as “the principal Act”), in section 1, sub-section (4),— 

(i) in clause (a), for the word “twenty”, the word “fifty” shall be substituted; 

(ii) in clause (b), for the word “twenty”, the word “fifty” shall be substituted; 

(iii) in the proviso, for the word “twenty”, the word “fifty” shall be substituted. 

[Vide Gujarat Act 2 of 2021, s. 2] 
2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

1[(a) “appropriate Government” means,— 

(i) in relation to an establishment in respect of which the appropriate Government under the 

Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government; 

(ii)  in  relation  to  any  other  establishment,  the  Government  of  the  State  in  which  that  other 

establishment is situate;] 

(b) a workman shall be deemed to be employed as “contract labour” in or in connection with the 
work  of  an  establishment  when  he  is  hired  in  or  in  connection  with  such  work  by  or  through  a 
contractor, with or without the knowledge of the principal employer; 

(c)  “contractor”,  in  relation  to  an  establishment,  means  a  person  who  undertakes  to  produce  a 
given  result  for  the  establishment,  other  than  a  mere  supply  of  goods  of  articles  of  manufacture  to 
such  establishment,  through  contract  labour  or  who  supplies  contract  labour  for  any  work  of  the 
establishment and includes a sub-contractor; 

(d) “controlled industry” means any industry the control of which by the Union has been declared 

by any Central Act to be expedient in the public interest; 

(e) “establishment” means— 

(i) any office or department of the Government or a local authority, or 

(ii) any place where any industry, trade, business, manufacture or occupation is carried on; 

(f) “prescribed” means prescribed by rules made under this Act; 

(g) “principal employer” means— 

(i) in relation to any office or department of the Government or a local authority, the head of 
that  office  or department  or  such other  officer  as the Government  or  the local authority,  as  the 
case may be, may specify in this behalf, 

(ii) in a factory, the owner or occupier of the factory and where a person has been named as 

the manager of the factory under the Factories Act, 1948 (63 of 1948), the person so named, 

(iii)  in  a  mine,  the  owner  or  agent  of  the  mine  and  where  a  person  has  been  named  as  the 

manager of the mine, the person so named, 

(iv) in any other establishment, any person responsible for the supervision and control of the 

establishment. 

Explanation.—For the purpose of sub-clause (iii) of this clause, the expressions “mine”, “owner” and 
“agent” shall have the meanings respectively assigned to them in clause (j), clause (l) and clause (c) of 
sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); 

(h) “wages” shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of 

Wages Act, 1936 (4 of 1936); 

(i)  “workman”  means  any  person  employed  in  or  in  connection  with  the  work  of  any 
establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical 

1. Subs. by Act 14 of 1986, s. 2, for clause (a) (w.e.f. 28-1-1986). 

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work for hire or reward, whether the terms of employment be express or implied, but does not include 
any such person— 

(A) who is employed mainly in a managerial or administrative capacity; or 

(B)  who,  being  employed  in  a  superviory  capacity  draws  wages  exceeding  five  hundred 
rupees  per  mensem  or  exercises,  either  by  the  nature  of  the  duties  attached  to  the  office  or  by 
reason of the powers vested in him, functions mainly of a managerial nature; or 

(C) who is an out-worker, that is to say, a person to whom any articles or materials are given 
out  by  or  on  behalf  of  the  principal  employer  to  be  made  up,  cleaned,  washed,  altered, 
ornamented,  finished,  repaired,  adapted  or  otherwise  processed  for  sale  for  the  purposes  of  the 
trade or business of the principal employer and the process is to be carried out either in the home 
of  the  out-worker  or  in  some  other  premises,  not  being  premises  under  the  control  and 
management of the principal employer. 

(2) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir* shall, 
in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State. 

CHAPTER II 

THE ADVISORY BOARDS 

3.  Central  Advisory  Board.—(1)  The  Central  Government  shall,  as  soon  as  may  be,  constitute  a 
board  to  be  called  the  Central  Advisory  Contract  Labour  Board  (hereinafter  referred  to  as  the  Central 
Board) to advise the Central Government on such matters arising out of the administration of this Act as 
may be referred to it and to carry out other functions assigned to it under this Act. 

(2) The Central Board shall consist of— 

(a) a Chairman to be appointed by the Central Government; 

(b) the Chief Labour Commissioner (Central), ex officio; 

(c)  such  number  of  members,  not  exceeding  seventeen  but  not  less  than  eleven,  as  the  Central 
Government may nominate to represent that Government, the Railways, the coal industry, the mining 
industry,  the  contractors,  the  workmen  and  any  other  interests  which,  in the  opinion  of the  Central 
Government, ought to be represented on the Central Board. 

(3)  The  number  of  persons  to  be  appointed  as  members  from  each  of  the  categories  specified  in                 

sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the 
discharge of their functions by, and the manner of filling vacancies among, the members of the Central 
Board shall be such as may be prescribed: 

Provided that the number of members nominated to represent the workmen shall not be less than the 

number of members nominated to represent the principal employers and the contractors. 

4. State Advisory Board.—(1) The State Government may constitute a board to be called the State 
Advisory  Contract  Labour  Board  (hereinafter  referred  to  as  the  State  Board)  to  advise  the  State 
Government on such matters arising out of the administration of this Act as may be referred to it and to 
carry out other functions assigned to it under this Act. 

(2) The State Board shall consist of— 

(a) a Chairman to be appointed by the State Government; 

(b)  the  Labour  Commissioner,  ex  officio,  or  in  his  absence  any  other  officer  nominated  by  the 

State Government in that behalf; 

*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 
and Kashmir and the Union territory of Ladakh. 

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(c)  such  number  of  members,  not  exceeding  eleven  but  not  less  than  nine,  as  the  State 
Government may nominate to represent that Government, the industry, the contractors, the workmen 
and any other interests which, in the opinion of the State Government, ought to be represented on the 
State Board.  

(3)  The  number  of  persons  to  be  appointed  as  members  from  each  of  the  categories  specified  in                 

sub-section (2), the term of office and other conditions of service of, the procedure to be followed in the 
discharge  of  their  functions  by,  and  the  manner  of  filling  vacancies  among  the,  members  of  the  State 
Board shall be such as may be prescribed: 

Provided that the number of members nominated to represent the workmen shall not be less than the 

number of members nominated to represent the principal employers and the contractors. 

5. Power to constitute committees.—(1) The Central Board or the State Board, as the case may be, 

may constitute such committees and for such purpose or purposes as it may think fit. 

(2)  The  committee  constituted  under  sub-section  (1)  shall  meet  at  such  times  and  places  and  shall 
observe  such  rules  of  procedure  in  regard  to  the  transaction  of  business  at  its  meetings  as  may  be 
prescribed. 

(3) The members of a committee shall be paid such fees and allowances for attending its meetings as 

may be prescribed: 

Provided  that  no  fees  shall  be  payable  to  a  member  who  is  an  officer  of  Government  or  of  any 

corporation established by any law for the time being in force. 

CHAPTER III 

REGISTRATION OF ESTABLISHMENTS EMPLOYING CONTRACT LABOUR 

6. Appointment of registering officers.—The appropriate Government may, by an order notified in 

the Official Gazette— 

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be registering 

officers for the purposes of this Chapter; and 

(b) define the limits, within which a registering officer shall exercise the powers conferred on him 

by or under this Act. 

7.  Registration  of  certain  establishments.—(1)  Every  principal  employer  of  an  establishment  to 
which this Act applies shall, within such period as the appropriate Government may, by notification in the 
Official Gazette, fix in this behalf with respect to establishments generally or with respect to any class of 
them,  make  an  application  to  the  registering  officer  in  the  prescribed  manner  for  registration  of  the 
establishment: 

Provided that the registering officer may entertain any such application for registration after expiry of 
the  period fixed in  this  behalf,  if  the registering  officer is satisfied that  the  applicant  was  prevented  by 
sufficient cause from making the application in time. 

(2) If the application for registration is complete in all respects, the registering officer shall register 
the  establishment  and  issue  to  the  principal  employer  of  the  establishment  a  certificate  of  registration 
containing such particulars as may be prescribed. 

STATE AMENDMENTS 

Uttar Pradesh 

In section 7 of the principal Act, after sub-section (2) the following sub-section shall be inserted, 

namely:- 

“(3) On submission of application in all respect the registering officer shall grant or refuse to grant or 
object to grant registration within one day from the date of submission of application and in such manner 
as may be prescribed. On the expiration of the said period the registration shall be deemed to be granted.” 

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Applicant  may  submit  his  application  on  departmental  web  portal  along  with  necessary  documents 
and payment of fee. In such case if the application is complete in all respect and the applicant is eligible, 
automatic  registration  shall  be  granted  by  the  web  portal  and  registration  certificate  be  sent  through  e-
mail; 

Provided that if the registration is obtained by the misrepresentation of fact or concealment of fact or 
on the basis of forged document then such registration shall be deemed null and void and can be cancelled 
by registering officer and legal action shall be taken against applicant.” 

[Vide the Uttar Pradesh Act 14 of 2018, s. 3] 

8.  Revocation  of  registration  in  certain  cases.—If  the  registering  officer  is  satisfied,  either  on  a 
reference  made  to  him  in  this  behalf  or  otherwise,  that  the  registration  of  any  establishment  has  been 
obtained  by  misrepresentation  or  suppression  of  any  material  fact,  or  that  for  any  other  reason  the 
registration  has  become  useless  or  ineffective  and,  therefore,  requires  to  be  revoked,  the  registering 
officer may, after giving an opportunity to the principal employer of the establishment to be heard and 
with the previous approval of the appropriate Government, revoke the registration. 

9. Effect of non-registration.—No principal employer of an establishment, to which this Act applies, 

shall— 

(a) in the case of an establishment required to be registered under section 7, but which has not 

been registered within the time fixed for the purpose under that section, 

(b) in the case  of  an  establishment  the registration  in respect  of  which  has been revoked  under 

section 8, 

employ contract labour in the establishment after the expiry of the period referred to inclause (a) or after 
the revocation of registration referred to in clause (b), as the case may be. 

10.  Prohibition  of  employment  of  contract  labour.—(1)  Notwithstanding  anything  contained  in 
this Act, the appropriate Government may, after consultation with the Central Board or, as the case may 
be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any 
process, operation or other work in any establishment. 

(2)  Before  issuing  any  notification  under  sub-section  (1)  in  relation  to  an  establishment,  the 
appropriate Government shall have regard to the conditions of work and benefits provided for the contract 
labour in that establishment and other relevant factors, such as— 

(a)  whether  the  process,  operation  or  other  work  is  incidental  to,  or  necessary  for  the  industry, 

trade, business, manufacture or occupation that is carried on in the establishment; 

(b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the 

nature of industry, trade, business, manufacture or occupation carried on in that establishment; 

(c)  whether  it  is  done  ordinarily  through,  regular  workmen  in  that  establishment  or  an 

establishment similar thereto; 

(d) whether it is sufficient to employ considerable number of wholetime workmen. 

Explanation.—If  a  question  arises  whether  any  process  or  operation  or  other  work  is  of  perennial 

nature, the decision of the appropriate Government thereon shall be final. 

CHAPTER IV 

LICENSING OF CONTRACTORS 

11. Appointment of licensing officers.—The appropriate Government may, by an order notified in 

the Official Gazette,— 

(a) appoint such persons, being Gazetted Officers of Government, as it thinks fit to be licensing 

officers for the purposes of this Chapter; and 

(b)  define  the  limits,  within  which  a  licensing  officer  shall  exercise  the  powers  conferred  on 

licensing officers by or under this Act. 

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12. Licensing of contractors.—(1) With effect from such date as the appropriate Government may, 
by notification in the Official Gazette, appoint, no contractor to whom this Act applies, shall undertake or 
execute  any  work  through contract labour  except  under and in  accordance  with a  licence  issued in that 
behalf by the licensing officer. 

(2) Subject to the provisions of this Act, a licence under sub-section (1) may contain such conditions 
including, in particular, conditions as to hours of work, fixation of wages and other essential amenities in 
respect of contract labour as the appropriate Government may deem fit to impose in accordance with the 
rules, if any, made under section 35 and shall be issued on payment of such fees and on the deposit of 
such sum, if any, as security for the due performance of the conditions as may be prescribed. 

13.  Grant  of  licences.—(1)  Every  application  for  the  grant  of  a  licence  under  sub-section  (1)  of 
section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of 
the establishment, the nature of process, operation or work for which contract labour is to be employed 
and such other particulars as may be prescribed. 

(2)  The  licensing  officer  may  make  such  investigation  in  respect  of  the  application  received  under 
sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as 
may be prescribed. 

(3)  A  licence  granted  under  this  Chapter shall  be  valid  for the  period  specified therein and  may  be 
renewed from time to time for such period and on payment of such fees and on such conditions as may be 
prescribed. 

Uttar Pradesh 

STATE AMENDMENTS 

Amendment of Section 13.—In section 13 of the principal Act, after sub-section (3) the following 

sub section shall be inserted, namely:— 

“(4) If an application for licenses is complete in all respects and the licensing officer fails to make any 

order within a period of one day then it shall be deemed that the license has been granted to him.” 

[Vide the Uttar Pradesh Act 14 of 2018, s. 4] 

14.  Revocation,  suspension  and  amendment  of  licences.—(1)  If  the  licensing  officer  is  satisfied, 

either on a reference made to him in this behalf or otherwise, that— 

(a) alicence granted under section 12 has been obtained by  misrepresentation or suppression of 

any material fact, or 

(b)  the  holder  of  a  licence  has,  without  reasonable  cause,  failed  to  comply  with  the  conditions 
subject to which the licence has been granted or has contravened any of the provisions of this Act or 
the rules made thereunder, 

then, without prejudice to any other penalty to which the holder of the licence may be liable under this 
Act,  the  licensing  officer  may,  after  giving  the  holder  of  the  licence  an  opportunity  of  showing  cause, 
revoke or suspend the licence or forfeit the sum, if any, or any portion thereof deposited as security for 
the due performance of the conditions subject to which the licence has been granted. 

(2) Subject to any rules that may be made in this behalf, the licensing officer may vary or amend a 

licence granted under section 12. 

15. Appeal.—(1) Any person aggrieved by an order made under section 7, section 8, section 12 or 
section 14 may, within thirty days from the date on which the order is communicated to him, prefer  an 
appeal  to  an  appellate  officer  who  shall  be  a  person  nominated  in  this  behalf  by  the  appropriate 
Government: 

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty 

days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. 

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant 

an opportunity of being heard, dispose of the appeal as expeditiously as possible. 

9 

CHAPTER V 

WELFARE AND HEALTH OF CONTRACT LABOUR 

16.  Canteens.—(1)  The  appropriate  Government  may  make  rules  requiring  that  in  every 

establishment— 

(a) to which this Act applies, 

(b) wherein work requiring employment of contract labour is likely to continue for such period as 

may be prescribed, and 

(c)  wherein  contract  labour  numbering  one  hundred  or  more  is  ordinarily  employed  by  a 

contractor, 

one  or  more  canteens  shall  be  provided  and  maintained  by  the  contractor  for  the  use  of  such  contract 
labour. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for— 

(a) the date by which the canteens shall be provided; 

(b) the  number  of  canteens  that shall be  provided,  and  the  standards in respect of  construction, 

accommodation, furniture and other equipment of the canteens; and 

(c) the foodstuffs which may be served therein and the charges which may be made therefor. 

17. Rest-rooms.—(1) In every place wherein contract labour is required to halt at night in connection 

with the work of an establishment— 

(a) to which this Act applies, and 

(b) in which work requiring employment of contract labour is likely to continue for such period as 

may be prescribed, 

there shall be provided and maintained by the contractor for the use of the contract labour such number of 
rest-rooms or such other suitable alternative accommodation within such time as may be prescribed. 

(2)  The  rest-rooms  or  the  alternative  accommodation  to  be  provided  under  sub-section  (1)  shall  be 

sufficiently lighted and ventilated and shall be maintained in a clean and comfortable condition. 

18. Other facilities.—It shall be the duty of every contractor employing contract labour in connection 

with the work of an establishment to which this Act applies, to provide and maintain— 

(a) a sufficient supply of wholesome drinking water for the contract labour at convenient places; 

(b)  a  sufficient  number  of  latrines  and  urinals  of  the  prescribed  types  so  situated  as  to  be 

convenient and accessible to the contract labour in the establishment; and 

(c) washing facilities. 

19. First-aid facilities.—There shall be provided and maintained by the contractor so as to be readily 
accessible during all working hours a first-aid box equipped with the prescribed contents at every place 
where contract labour is employed by him. 

20. Liability of principal employer in certain cases.—(1) If any amenity required to be provided 
under section 16, section 17, section 18 or section 19 for the benefit of the contract labour employed in an 
establishment is not provided by the contractor within the time prescribed therefor, such amenity shall be 
provided by the principal employer within such time as may be prescribed. 

(2) All expenses incurred by the principal employer in providing the amenity may be recovered by the 
principal  employer  from  the  contractor  either  by  deduction  from  any  amount  payable  to  the  contractor 
under any contract or as a debt payable by the contractor. 

21.  Responsibility  for  payment  of  wages.—(1)  A  contractor  shall  be  responsible  for  payment  of 
wages to each worker employed by him as contract labour and such wages shall be paid before the expiry 
of such period as may be prescribed. 

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(2) Every principal employer shall nominate a representative duly authorised by him to be present at 
the  time  of  disbursement  of  wages  by  the  contractor  and  it  shall  be  the  duty  of  such  representative  to 
certify the amounts paid as wages in such manner as may be prescribed. 

(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the 

authorised representative of the principal employer. 

(4) In case the contractor fails to make payment of wages within the prescribed period or makes short 
payment,  then  the  principal  employer  shall  be  liable  to  make  payment  of  wages  in  full  or  the  unpaid 
balance  due,  as  the  case  may  be,  to  the  contract  labour  employed  by  the  contractor  and  recover  the 
amount so paid from the contractor either by deduction from any amount payable to the contractor under 
any contract or as a debt payable by the contractor. 

CHAPTER VI 

PENALTIES AND PROCEDURE 

22. Obstructions.—(1) Whoever obstructs an inspector in the discharge of his duties under this Act 
or refuses or wilfully neglects to afford the inspector any reasonable facility for making any inspection, 
examination,  inquiry  or  investigation  authorised  by  or  under  this  Act  in  relation  to  an  establishment  to 
which, or a contractor to whom, this Act applies, shall be punishable with imprisonment for a term which 
may extend to three months, or with fine which may extend to five hundred rupees, or with both. 

(2)  Whoever  wilfully  refuses  to  produce  on  the  demand  of  an  inspector  any  register  or  other 
document kept in pursuance of this Act or prevents or attempts to prevent or does anything which he has 
reason to believe is likely to prevent any person from appearing before or being examined by an inspector 
acting in pursuance of his duties under this Act, shall be punishable with imprisonment for a term which 
may extend to three months, or with fine which may extend to five hundred rupees, or with both. 

23.  Contravention  of  provisions  regarding  employment  of  contract 

labour.—Whoever 
contravenes  any  provision  of  this  Act  or  of  any  rules  made  thereunder  prohibiting,  restricting  or 
regulating the employment of contract labour, or contravenes any condition of a licence granted under this 
Act, shall be punishable with imprisonment for a term  which may extend to three months, or with fine 
which  may  extend  to  one  thousand rupees,  or  with  both,  and in  the  case  of  a  continuing  contravention 
with  an  additional  fine  which  may  extend  to  one  hundred  rupees  for  every  day  during  which  such 
contravention continues after conviction for the first such contravention. 

24. Other offences.—If any person contravenes any of the provisions of this Act or of any rules made 
thereunder for which no other penalty is elsewhere provided, he shall be punishable with imprisonment 
for a term which may extend to three months, or with fine which may extend to one thousand rupees, or 
with both. 

25. Offences by companies.—(1) If the person committing an offence under this Act is a company, 
the company as well as every person in charge of, and responsible to, the company for the conduct of its 
business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall 
be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment if he proves that the offence was committed without his knowledge or that he exercised all 
due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance  of,  or  that  the  commission  of  the  offence  is  attributable  to  any  neglect  on  the  part  of  any 
director, manager, managing agent or any other officer of the company, such director, manager, managing 
agent  or  such  other  officer  shall  also  be  deemed  to  be  guilty  of  that  offence  and  shall  be  liable  to  be 
proceeded against and punished accordingly. 

Explanation.—For the purpose of this section— 

(a) “company” means any body corporate and includes a firm or other association of individuals; 

and 

11 

(b) “director”, in relation to a firm, means a partner in the firm. 

STATE AMENDMENT 

Uttar Pradesh 

Insertion of new Section 25-A.—After section-25 of the principal Act the following section shall be 

inserted, namely:— 

“25-A.  (1)  Any  offence  committed  under  this  Act,  punishable  with  fine  or  imprisonment  up  to  six 
months or with both may, on an application of the accuses person, either before or after institution of any 
prosecution, be compounded by such Competent Officer, as the State Government may by notification, 
specify for a sum of fifty percent of the maximum fine provided for such offence, in such manner as may 
be prescribed: 

Provided that the provision of compounding under this section shall be available only for commission 

of first offence. 

(2)  Every  application  for  the  compounding  of  an  offence  shall  be  made  in  such  manner  as  may  be 

prescribed. 

(3) Where any offence is compounded before the institution of any prosecution, no prosecution shall 
be  instituted  in  relation  to  such  offence,  against  the  offender  in  relation  to  whom  the  offence  is  so 
compounded. 

(4)  Where  the  composition  of  any  offence  is  made  after  the  institution  of  any  prosecution,  such 
composition shall be brought by the officer referred to in sub-section (1) in writing to the notice of the 
court in which prosecution is pending and on such notice of the composition of the offence being given, 
the person against whom the offence is so compounded shall be discharged.” 

[Vide the Uttar Pradesh Act 14 of 2018, s. 5] 

Union Territory Of Ladakh 

After section 25, insert- 

"25A. Compounding of offences.--(1) Any offence punishable under sub-sections (1) and (2) of 
section 22 and  section 24 may,  either  before  or  after  the  institution  of  the  persecution,  on  an 
application  by  the  alleged offender,  be  compounded by  such  officer  or  authority  as  the  appropriate 
Government  may  by  notification  in  the  official  Gazette,  specify  in  this  behalf  for  such  amount  as 
specified in the Table below:-- 

S. No.  Section 

Compounding amount 

TABLE 

1 

1 

2 

3 

22(1), 22(2) and 24  Number of workmen employed in the 

Amount not exceeding 

industry 

1 to 50 

51 to 100 

101 to 500 

More than 500 

Rs. 5000/- 

Rs. 8,000/- 

Rs. 12,000/- 

Rs. 16,000/-: 

Provided that the appropriate Government may, by notification in the Official Gazette, amend the 

said specified compounding amount: 

12 

Provided further that the offences of the same nature committed by the same offender for more 

than three occasions shall not be compoundable: 

Provided also that such offences shall be compounded only after the alleged offender has acted to 

the satisfaction of such officer or authority that such offence is not continued any further: 

Provided also that when an offence is compounded on an application by the principal employer or 
contractor, then seventy-five per cent. of the compounding amount received from him, shall be paid 
to  the  concerned  employee  or  equally  amongst  the  employees  and  if  any  employees  are  not 
identifiable, then the remaining amount shall be deposited in such manner as may be notified by the 
appropriate Government. 

(2) Where an offence has been compounded under sub-section (1), no further proceedings shall 
be  taken  against  the  offender  in  respect  of  such  offence  and  the  offender,  if  in  custody,  shall  be 
released or discharged." 

[Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, Notification 
no. S.O. 3465(E), dated (5-10-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of 
Central Laws) Order, 2020, Notification no. S.O. 3774(E), dated (23-10-2020).] 

26. Cognizance of offences.—No court shall take cognizance of any offence under this Act except on 
a complaint made by, or with the previous sanction in writing of, the inspector and no court inferior to 
that of a Presidency Magistrate or a magistrate of the first class shall try any offence punishable under this 
Act. 

27. Limitation of prosecutions.—No court shall take cognizance of an offence punishable under this 
Act  unless  the  complaint  thereof  is  made  within  three  months  from  the  date  on  which  the  alleged 
commission of the offence came to the knowledge of an inspector: 

Provided  that  where  the  offence  consists  of  disobeying  a  written  order  made  by  an  inspector, 
complaint  thereof  may  be  made  within  six  months  of  the  date  on  which  the  offence  is  alleged  to  have 
been committed. 

CHAPTER VII 

MISCELLANEOUS 

28. Inspecting staff.—(1) The appropriate Government may, by notification in the Official Gazette, 
appoint  such  persons  as  it  thinks  fit  to  be  inspectors  for  the  purposes  of  this  Act,  and  define  the  local 
limits within which they shall exercise their powers under this Act. 

(2) Subject to any rules made in this behalf, an inspector may, within the local limits for which he is 

appointed— 

(a) enter, at all reasonable hours, with such assistance (if any), being persons in the service of the 
Government  or  any  local  or  other  public  authority  as  he  thinks  fit,  any  premises  or  place  where 
contract labour is employed, for the purpose of examining any register or record or notices required to 
be kept or exhibited by or under this Act or rules made thereunder, and require the production thereof 
for inspection; 

(b) examine any person whom he finds in any such premises or place and who, he has reasonable 

cause to believe, is a workman employed therein; 

(c) require any person giving out work and any workman, to give any information, which is in his 
power to give with respect to the names and addresses of the persons to, for and from whom the work 
is given out or received, and with respect to the payments to be made for the work; 

(d) seize or take copies of such register, record of wages or notices or portions thereof as he may 
consider  relevant  in  respect  of  an  offence  under  this  Act  which  he  has  reason  to  believe  has  been 
committed by the principal employer or contractor; and 

13 

(e) exercise such other powers as may be prescribed. 

(3) Any person required to produce any document or thing or to give any information required by an 
inspector  under  sub-section  (2)  shall  be  deemed  to  be  legally  bound  to  do  so  within  the  meaning  of 
section 175 and section 176 of the Indian Penal Code (45 of 1860). 

(4) The provisions of the Code of Criminal Procedure, 1898 (5 of 1898), shall, so far as may be, apply 
to  any  search  or  seizure  under  sub-section  (2)  as  they  apply  to  any  search  or  seizure  made  under  the 
authority of a warrant issued under section 98 of the said Code. 

29.  Registers  and  other  records  to  be  maintained.—(1)  Every  principal  employer  and  every 
contractor shall maintain such registers and records giving such particulars of contract labour employed, 
the nature of work performed by the contract labour, the rates of wages paid to the contract labour and 
such other particulars in such form as may be prescribed. 

(2)  Every  principal  employer  and  every  contractor  shall  keep  exhibited  in  such  manner  as  may  be 
prescribed within the premises of the establishment where the contract labour is employed, notices in the 
prescribed form containing particulars about the hours of work, nature of duty and such other information 
as may be prescribed. 

30. Effect of laws and agreements inconsistent with this Act.—(1) The provisions of this Act shall 
have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of 
any agreement or contract of service, or in  any standing orders applicable to the establishment whether 
made before or after the commencement of this Act: 

Provided  that  where  under  any  such  agreement,  contract  of  service  or  standing  orders  the  contract 
labour  employed  in  the  establishment  are  entitled  to  benefits  in  respect  of  any  matter  which  are  more 
favourable to them than those to which they would be entitled under this Act, the contract labour shall 
continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that they 
receive benefits in respect of other matters under this Act. 

(2)  Nothing  contained  in  this  Act  shall  be  construed  as  precluding  any  such  contract  labour  from 
entering into an agreement with the principal employer or the contractor, as the case may be, for granting 
them rights or privileges in respect of any matter which are more favourable to them than those to which 
they would be entitled under this Act. 

31.  Power  to  exempt  in  special  cases.—The  appropriate  Government  may,  in  the  case  of  an 
emergency, direct, by notification in the Official Gazette, that subject to such conditions and restrictions, 
if any, and for such period or periods, as may be specified in the notification, all or any of the provisions 
of this Act or the rules made thereunder shall not apply to any establishment or class of establishments or 
any class of contractors. 

32. Protection of action taken under this Act.—(1) No suit, prosecution or other legal proceedings 
shall lie against any registering officer, licensing officer or any other Government servant or against any 
member of the Central Board or the State Board, as the case may be, for anything which is in good faith 
done or intended to be done in pursuance of this Act or any rule or order made thereunder. 

(2)  No  suit  or  other  legal  proceedings  shall  lie  against  the  Government  for  any  damage  caused  or 
likely to be caused by anything which is in good faith done or intended to be done in pursuance of this 
Act or any rule or order made thereunder. 

33. Power to give directions.—The Central Government may give directions to the Government of 

any State as to the carrying into execution in the State of the provisions contained in this Act. 

34. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order published in the Official Gazette, make such provisions not 
inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the 
difficulty. 

35.  Power  to  make  rules.—(1)  The  appropriate  Government  may,  subject  to  the  condition  of 

previous publication, make rules for carrying out the purposes of this Act. 

14 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  number  of  persons  to  be  appointed  as  members  representing  various  interests  on  the 
Central  Board  and  the  State  Board,  the  term  of  their  office  and  other  conditions  of  service,  the 
procedure to be followed in the discharge of their functions and the manner of filling vacancies; 

(b)  the  times  and  places  of  the  meetings  of  any  committee  constituted  under  this  Act,  the 
procedure  to  be  followed  at  such  meetings  including  the  quorum  necessary  for  the  transaction  of 
business, and the fees and allowances that may be paid to the members of a committee; 

(c)  the  manner  in  which  establishments  may  be  registered  under  section  7,  the  levy  of  a  fee 

therefor and the form of certificate of registration; 

(d)  the  form  of  application  for  the  grant  or  renewal  of  a  licence  under  section  13  and  the 

particulars it may contain; 

(e) the manner in which an investigation is to be made in respect of an application for the grant of 

a licence and the matters to be taken into account in granting or refusing a licence; 

(f) the form of a licence which may be granted or renewed under section 12 and the conditions 
subject to which the licence may be granted or renewed, the fees to be levied for the grant or renewal 
of a licence and the deposit of any sum as security for the performance of such conditions; 

(g) the circumstances under which licences may be varied or amended under section 14; 

(h) the form and manner in which appeals may be filed under section 15 and the procedure to be 

followed by appellate officers in disposing of the appeals; 

(i) the time within which facilities required by this Act to be provided and maintained may be so 
provided  by  the  contractor  and  in  case  of  default  on  the  part  of  the  contractor,  by  the  principal 
employer; 

(j) the number and types of canteens, rest-rooms, latrines and urinals that should be provided and 

maintained; 

(k) the type of equipment that should be provided in the first-aid boxes; 
(l)  the  period  within  which  wages  payable  to  contract  labour  should  be  paid  by  the  contractor 

under sub-section (1) of section 21; 

(m) the form of registers and records to be maintained by principal employers and contractors; 
(n) the submission of returns, forms in which, and the authorities to which, such returns may be 

submitted; 

(o) the collection of any information or statistics in relation to contract labour; and 
(p) any other matter which has to be, or may be, prescribed under this Act. 

(3) Every rule made by the Central Government under this Act shall be laid as soon as may be after it 
is made, before each House of Parliament while it is in session for a total period of thirty days which may 
be comprised in one session or in two successive sessions, and if before the expiry of the session in which 
it is so laid or the session immediately following, both Houses agree in making any modification in the 
rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in 
such  modified  form  or  be of  no  effect,  as  the  case  may  be; so,  however, that  any  such  modification  or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

1[(4) Every rule made by the State Government under this Act shall be laid, as soon as may be after it 

is made, before the State Legislature.] 

1. Ins. by Act 4 of 2005, s. 2 and the Schedule (w.e.f. 11-1-2005). 

15 

                                                           
